Pcf Share Discussion Threads

[cc2014] 01/10/2021 10:32

So, this morning PCF have withdrawn all savings products and I perceive it's pretty likely it's because the PRA have now intervened.

Yesterday PCF should have filed their accounts for Y/E Sept 19 but didn't do so and regardless of any assurance PCF can give I cannot see how the PRA would allow PCF to carry on taking customer deposits in this scenario.

It's too much of a coincidence the savings products being withdrawn ysterday.


My thoughts are with you all. I hope I'm wrong but I think things now look very bad.

[seasidehippo] 01/10/2021 10:14

My guess is we are waiting for PwC UK ("Building relationships, creating value") to complete their work but I could be wrong

[graham1ty] 01/10/2021 07:14

So, into a new financial year today.

So, now 2020 results not even produced within 365 days.

In a normal year, we might by now have a trading update, with a rough indication of how fiscal 2021 has been.

Instead......silence

[hopespr1ngseternal] 30/9/2021 22:40

CC2014: they missed the end July deadline as well. RNS filed days late. Ironic considering regulatory breaches got them into this.

[cc2014] 30/9/2021 22:16

I am little surprised no RNS today as PCF fail to file their accounts on time with Companies House.



Of course they have a couple of hours to do it yet!

[hopespr1ngseternal] 30/9/2021 21:19

Dandi: I would hope they are nearing completion. After all there is a hard deadline in November. But I am not expecting anything until Monday. The next RNS is liable to be lengthy and will involve lawyers etc who like to review drafts over a weekend. Next week is a real possibility. Chimes with my thesis that they will wait until after year end so that they can issue a trading update for FY 2021.

[dandigirl] 30/9/2021 19:40

Hopes: Yes - note, however, that my last exchange was during the early part of August.

Surely they must be nearing completion.

Maybe we will hear something tomorrow being Friday, 1st.

I appreciate that pcf is a tiddler but isn't it odd that there has been no press comment? Nothing in Shares Mag nor IC that I have seen. Weird.

[hopespr1ngseternal] 30/9/2021 14:21

Dandi: agreed. BTW the response from Franklin to your letter was interesting since we can infer that they regard the June RNS as virtually a manifesto and that follow ups are not required unless something in that RNS no longer holds good. Hence nothing material until 10th September.

[dandigirl] 30/9/2021 12:15

Hopes: We appear to understand one another. Best left there before we get unto trouble.

[hopespr1ngseternal] 29/9/2021 23:01

Dandi: I did qualify by saying ‘in principle’.

[dandigirl] 29/9/2021 20:51

Hopes: Of course. However, I am trying hard not to suggest naivety.

As regards non-execs, Franklin is a non-exec chairman. I have written to him twice. Asserts he is chairman for all, etc. RNS of 28/06 says what they are up to. Thanks me for my patience. That was over a month ago. Grhh.

[graham1ty] 29/9/2021 20:11

Petrified, from the Latin for rock, so meaning turned to rock/stone.

Or, for our non Execs, about as much use as a bloody lump of stone.

[hopespr1ngseternal] 29/9/2021 19:20

I imagine the non-execs are petrified after having been found asleep at the wheel.

[graham1ty] 29/9/2021 18:58

Hippo, they are called Non Executives.

In this case, chocolate teapots

[seasidehippo] 29/9/2021 16:05

Its a shame there isn't an independent external body with teeth and clout to report our concerns to.

[hopespr1ngseternal] 29/9/2021 15:18

Dandi: don’t directors have a duty of confidentiality? At least ‘en principe’? Do we need to think about forming a shareholders’ action group?

[dandigirl] 29/9/2021 15:11

Hopes: There is a certain director who sits on the Board to represent SOMERS interest.

I agree they are not supposed to have any information not generally available to all.

[hopespr1ngseternal] 29/9/2021 13:14

The carrying value on 30th September 2020 was 18p. determined by reference to the share price on that date (p25 and 62 of Somers 2020 financial statements). It looks as though they have now applied a liquidity discount to reflect the suspension. In the case of unlisted companies the liquidity discount ranges from 10-30% (p 79). Whether that applies to PCF or not is anybody’s guess. It is inconceivable to me that they did an appraisal for the Aug 21 financials since they are not supposed to have any information which is not available to the general body of shareholders and in any event the 2020 result estimate confirmed in the June RNS was still pretty decent.

[cc2014] 29/9/2021 12:57

What is in their 2020 Annual Report is a “fair value” for their PCF holding of US$31,955,429. This is a very low carrying value, as with a holding of c162m shares, that is just 19.8c, or a sterling value of approximately 15p. That compares to the suspension price of 24p.

At the end of Sept 2020 which is Somers year end, according to my chart from HL it looks like the mid price for PCF was approx 17.5p, so I'd suggest Somers just valued it at around the bid price, so 15p.

Now during Q1, PCF's share price rose so Somers would have marked it up. And then in Q2 it fell so Somers would have marked it down.

At end Q2, half year, Somers had $727m under management of which PCF was $44.6m (see the half year report) or around 21p a share which fits with my HL chart.


So, they have written it down from 21p a share to some lower number. Tbh I wouldn't read too much into it. They made $66m in the quarter after writing down PCF. If I were them I'd have written it down to some stupid low level so when it comes back from suspension it can show a lovely mark-up in the next quarters gains and give the fund another great performance.

[graham1ty] 29/9/2021 12:00

Dandi, c15p was their carrying value. And they state they have written it down......

So, well less than 15p.......

[dandigirl] 29/9/2021 11:46

Thank you, G1TY.
That 15p number is interesting.
Hope it isn't a portent.
As of today, would settle for that when suspension is lifted but not as a sale/purchase price.

[graham1ty] 29/9/2021 11:15

Somers is a quoted company in Bermuda, so have been trying to look at their own announcements re PCF

20 May, the day after suspension, Somers 2Q results make no reference to the suspension, but just report the total PCF loan book of £440m

9 August 3Q results report an increase in Somers NAV of 61% so far this year, and record record net income of $262m for the first nine months of the year, and a total shareholders funds of $680m. However, it goes on to say “.....a reduction in the value of PCF where Somers has marked down the value of its PCF holding to reflect that company’s shares are currently suspended from trading”. What I cannot see is any numbers, and idea of how much it is written down.

What is in their 2020 Annual Report is a “fair value” for their PCF holding of US$31,955,429. This is a very low carrying value, as with a holding of c162m shares, that is just 19.8c, or a sterling value of approximately 15p. That compares to the suspension price of 24p.

It implies that Somers have written down their holding to below 15p. Their August announcement states they are written down because the shares are suspended, NOT because there is an assessed reduction in valuation, thought that may be pure wishful thinking.

I can see no further announcements from Somers to the Bermuda Stock Exchange re PCF

[dandigirl] 29/9/2021 07:20

Join the club. What do we know? Not a lot! But we can be pretty sure though that SOMERS are being kept up to date unlike the rest of us.

In the meantime I can only wonder why it is taking so long, gnash my teeth and muse as to the various possibilities.

[hopespr1ngseternal] 28/9/2021 23:09

Dandi: because I might be wrong!

[dandigirl] 28/9/2021 23:02

Hopes: You declared I was mischief making when I suggested such a thing 10 days ago. Why the change of heart?

Surely a 60% plus shareholder will be calling the tune and directing the orchestra. But what is the tune? That is the question.